A Simulation Model of Strategic Collaborative Supply Chain

Abstract

Strategic collaboration between business partners is one of the most important factor that could affect business performance positively. It could reduce environmental uncertainties and consequently optimize operational costs. The objective of this paper is to uncover the behavior of the collaborative supply chain based on a dynamic model. This model ran by Vensim DSS software. The results of the simulation confirm that the collaborative model, in both certain and uncertain modes of demand, lead to reduction in inventories and oscillation through the whole supply chain.

Keywords

• supply chain
• strategic collaboration
• system dynamics